Almost everyone loves Christmas and hates January. Many describe the first month of the year as the longest because the probability that one may run out of cash is high as a result of inadequate planning.
Although experts have advised that people save ahead of the yuletide to enjoy December and January, the case is mostly different.
GhanaWeb Business in this article explores some of the reasons why the first 30 days of each year are considered a difficult month.
Loads of responsibilities and new academic year
Usually two weeks into January, schools reopen and with that, parents have to pay fees and buy supplies for the new academic year.
If unplanned, reality check comes in and this leaves parents in a difficult place.
Drain from early December salary and expense load
Given the festive nature of December, salaries and in some instances, bonuses are paid early in the month.
If an individual is unable to resist the temptation of engaging in "detty" December aura which often comes with spending lavishly on food, concerts, new cloths, etc - the teeth of January often bites hard.
Impulse buying over holiday
Aside the chilling aspect of expending December salary and bonuses, the festive period comes with the temptation of impulse buying with attendant discounted sales in the markets and malls.
Unplanned or indiscriminate purchasing is a surefire way to end up stuck for the entire month of January due to all of one's problems.
General rise in prices of goods and services
With budgets usually presented in December of a preceding year, most new taxes take effect early the following year.
With that development comes the issue of general rise in prices of goods as traders seek to ramp profits early on in the year. Items that are in high demand like stationary end up having hiked prices as schools reopen.
Generally, prices of utility could also marginally or sharply spike for different reasons, not forgetting the issue of fuel price and effect on public transport fares.
For all who have to wait till late January to receive their next paychecks, the month will certainly look gloomy and bleak and in worse case scenarios, salary advance and or loans become the go-to remedy.
But whether or not January is a difficult month or one that gives anyone a soft-landing, it is essentially a case of planning and sticking to plan.
Happy New Year from the team at GhanaWeb and remember to spend wisely.
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